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Jun 30, 2023
Digi Q3 2023 Earnings Report
Reported record quarterly revenue and ARR growth.
Key Takeaways
Digi International reported record quarterly revenue of $112 million, representing an 8% increase year-over-year. The company's ARR reached $104 million, a 13% increase. EPS was $0.18, and adjusted EPS was $0.50.
Revenue was $112 million, an increase of 8%.
Gross profit margin was 56.9%, an increase of 140 basis points.
Net income per diluted share was $0.18, up from $0.12, an increase of 50%.
ARR was $104 million at quarter end, an increase of 13%.
Revenue by Segment
Forward Guidance
For the fourth fiscal quarter of 2023, Digi expects revenue of $108 million to $112 million, representing a growth of 2% to 6% year-over-year. Adjusted EBITDA is expected to be between $23.0 million and $24.0 million. Adjusted EPS is expected to be $0.46 to $0.49 per diluted share.
Positive Outlook
- Expects revenue of $108 million to $112 million, or growth of 2% to 6% year-over-year.
- Adjusted EBITDA is expected to be between $23.0 million and $24.0 million.
- Adjusted EPS is expected to be $0.46 to $0.49 per diluted share.
- Expects to grow annual revenues at least 14%.
- A-EBITDA to grow faster than total revenue growth.
Challenges Ahead
- Debate around an imminent recession and the potential severity if one arrives is ongoing.
- ARR may not outpace total revenue growth.
- Difficult to predict with reasonable certainty various items including but not limited to the impact of foreign exchange translation, interest and certain tax related events.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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